[MUSIC] So what is an efficient factory? How do you define IT performance? In my view, this is about ensuring you create maximal value at minimal cost. At BCG, we have developed a simple equation just to put that into consideration and decompose the key items. So putting like an equation means you want to be sure that you minimize the cost while you maximize the value. So what's in that? The value is the value for the business, of course. You want the business to get as much value as they can, and this is about making sure they will have the right demand quality. Demand quality, this is what I request, the sum of my requirements, all the small items, all the functionalities to be sure that on the field, people will get the great value. Either you're able to automate more or you have more visibility on steering your business. Being sure you have the right demand quality is about defining the right process between business and IT. Because you don't want to have to do back and forth and ask requirements that don't create so much value so you're overwhelmed with some of those things you have to deliver but it will not take you anywhere. It's about finding the right balance, the right chemistry between what's requested and what you want to deliver. For that, you have to put in place demand management processes. Animating the portfolio of course, but ahead of time, having the constant dialog with the business, whether it's business process owners or the key users, to make sure you really capture what they really need. For that, you may want to design a front office organization with rather senior people, who will be able to manage the dialogue, and challenge the business in a constructive way. Then, you want to look at productivity. Of course, when you talk about an efficient factory, you think about productivity. So what is it to be productive? One, is to make sure that you do as little tasks as you can to deliver one thing. It's a streamlined processes. You don't do tons of things that create noise around your delivery, you want to be right to the point. This will come through the right project methodology, the right control loop. Testing as you go to be sure that you don't have to rework, you don't waste time, you don't have bottlenecks. And then of course, it's very much tied into the cost of the resources you use. You want to tailor the resources you use exactly to what needs to be done. Sometimes you will require a highly paid engineer from the western world. Sometimes, you can go for a more low-cost resource. This is about finding the right match, and we will come back to that. Designing IT organization, managing the resources is really about finding the exact right match between a competence and what has to be done. And then lastly, and I think this is interesting to highlight that in that equation, this is not only about demand quality and productivity. There is something else around that. There's also a bit round the technical complexity. Indeed, if what you design is very complex from a technical perspective, lots of interfaces, lots of customization, lots of variety in the software suite you use, for example. You will lose some energy around what you do, and this is not bringing value. So technical complexity is really critical inside what you design, but also, you have to keep in mind that what you design has to fit in a legacy landscape. And the more complex it is, the more difficult it is to fit in because you have lots of interfaces with various versions of software licenses and so on that you have to take into consideration. And it's complicated to deliver, and then it's complicated to maintain. So now that we have this equation, we can take you through more details about how we feel it's relevant to build the IT organization.
